Book a demo

California has passed a new law prohibiting employers from using credit checks in most cases, according to Workforce.

Starting January 1, employers will only be able to only use consumer credit reports for:

  • Managers
  • Positions in the state Justice Department
  • Law enforcement officers
  • Positions where credit reports are required by law
  • Positions where employee must access a retail establishment’s credit card applications
  • Positions in which a person would be a named signatory on a bank or credit card account
  • Positions that require access to confidential information
  • Positions that involve regular access to cash amounts of $10,000 or more

The Equal Employment Opportunity Commission (EEOC) recently held a hearing regarding credit checks, so it is quite possible that similar legislation could be considered on the federal level.

Recruiters with clients in California will want to make sure their clients are aware of this new law.  Even if you don’t do business in California, it’s good to be familiar with this new law since the possibility of similar federal legislation is looming.

You may also be interested in…


Independent Contractor Compliance: DOL vs IRS

In the realm of labor and taxation, the classification of workers as...

Case study

New Zealand Based Company Expands to USA with FoxHire

How can an international company expand to America and hire new employees?...


Why Contract Staffing Should Be in Your Playbook

Are you a direct hire recruiter looking to grow your business? Contract...

A complete Employer of Record (EOR) platform for onboarding, payroll, and compliance – so you can hire without the hassle.